Think the bailout failure just affected the US?

Think again…

The failure of this bailout plan is affecting the world markets as well, according to the BBC.

The markets affected are:

The UK’s FTSE 100 index was up 0.18% or 8.5 points to 4,827 by 12:00 BST, while Germany’s Dax was 0.9% lower at 5,756 and France’s Cac was down 0.2% to 3,949
Banking shares were the biggest fallers in London, as concerns grow about how the delay in securing a US rescue deal will hit the financial system
HBOS was down 12%, Royal Bank of Scotland was 6% lower
Japan’s Nikkei index ended Tuesday down 4.1%, while Hong Kong’s Hang Seng rose 0.8%
In Russia, trading was temporarily suspended on the country’s two main stock markets
In the Republic of Ireland, the government announced that all bank deposits would be guaranteed for the next two years
European bank Dexia has received a state bail-out, costing the Belgian, French and Luxembourg governments a combined 6.4bn euros ($9.2bn; £5bn)

So, this isn’t just an American crisis, this could very well turn into a world crisis, and from the looks of it, the crisis has already started.

Technorati Tags: Economy, Opinion, Politics, Wall Street Crisis, World News

More thoughts on the Bailout and it's effect on our Economy

I hate to admit it, but I agree with this…. Sort of…

Via RealClearMarkets – “In Times of Crisis, Trust Capitalism”:

The biggest bank failure in the history of the United States happened last Thursday night and by Friday morning, it was business as usual. The only difference was the name on the door and the losses suffered by those unfortunate enough to invest in Washington Mutual bonds or stock. The taxpayers didn’t lose anything and depositors didn’t lose anything, only investors. That is how capitalism works in case everyone has forgotten.

The “crisis” we face today is not a creation of the market. Government intervention over many years (but especially the last year) is what brought us to the point where we’ve placed our hopes for economic recovery on the good intentions of a Congress facing re-election in a few weeks. There has been much commentary recently about the role of Fannie Mae and Freddie Mac in the creation and expansion of the sub-prime mortgage market which many believe to be the cause of this mess.

That criticism is certainly warranted, but little attention has been paid to the real culprit – the Federal Reserve. Furthermore, what attention there has been is concentrated on the role of Alan Greenspan rather than Ben Bernanke. While Alan Greenspan deserves his share of the blame, Bernanke’s contribution to this mess should not be minimized or excused.

I have something to add to this as well. The biggest problem with this all is, most of this money, that’s being lost, is not even our money, it’s China’s money! Also half of the money being printed, does not have any gold to back it up! This is why our inflation is so high. As Joseph notes above, our biggest problem with our nation’s Economy is the Federal Reserve. If we got rid of the Federal Reserve, and went back to the 100% Gold Standard, much of our Nation’s Economic problems would be solved. Not to mention, if we stopped getting money from China.

The only thing that I really disagree with here, in a way, is the assessment that this all will not affect the American Taxpayers. In a sense, it will affect the taxpayers. Because it will cause a overall stall in the economy. This will translate into a crunch in the business world, small and mid-size businesses that do not have a great deal of capital will not be able to barrow money for needed expenses. This will cause a overall tightening of the financial belt amongst the Small to mid-sized business and will force them to dump employees.

Locally here in Michigan, our unemployment is at 7%, last I checked, I expect that to soar and get even worse, if this continues. Personally, I have family members who are paranoid about their jobs being lost. I assume that those jobs will get even more unstable, if this wears on.

Not to mention the fact that Taxpayers are watching their 401K’s and retirement nest eggs go down the tubes as well. That affects Conservatives who do not believe in using Social Security as a form of income. So, in a matter of speaking, this is going to effect everyone. In the form of Jobs, Retirements, 401k’s and more much.

Technorati Tags: Detroit ,Economy ,Housing Crisis ,Local ,Michigan ,Opinion ,Politics ,Wall Street ,Wall Street Crisis

A reason why this bail out failed…

I can understand this…

Via Andy McCarthy @ The Corner on National Review Online

This was a terrible bill. To take just a few particulars, why is there no reform of the government interventions that got us to this point in the first place? Why aren’t Fannie and Freddie being wound down — even after we’ve now had to make explicit the implicit, disastrous government guarantee? Why is Pelosi saying (as I noted in an earlier post) that the authority in the bill will allow the Treasury Department (perhaps soon an Obama Treasury Department) to take bad debt off the hands of mismanaged state and local governments?

Some would say that a bad bill would be better than no bill at all. I disagree. I believe that it is better to have a bill that works for the American people and does not bailout Wall Street and screw the American people and the small businesses over.

So, for once, I agree with something written over at the NRO. Mark this on your calendar, because it does not happen often. 😉

Others: Power Line

Technorati Tags: Economy, Housing Crisis, Opinion, Politics, Republican, Republicans, Wall Street

The Wall Street Bailout drama continues….

Just a word of warning, I’m still nursing my first cup of coffee. Coffee-cup Sleepy Yawn So, hopefully, this article will make some sense. Hee hee

But the good news is, I got my emoticons back here. Dancing So, I can at least show a little emotion in my writings. Big Grin

Some people say that if you use the Emoticons, people tend to not take you as serious. Well, to that I say, well, Phbbbttt Because I feel you would not take me serious either way, if had the emoticons or not.

The “Mother of all bailouts” is creating it’s share of drama in the Blogosphere and on Capital Hill. For instance, Minority Leader John A. Boehner called the deal a “crap sandwich”. Sick and Rep. Paul Ryan, R-Wisc., ranking Republican on the House Budget Committee said of the Bill, “It sucks”. Michelle Malkin is just flat out encouraging her people to “Kill the Bill”. However, Jack Fowler at the Corner is saying:

Conservatives should support them in backing the bailout plan. And then, when that is completed, roll up our sleeves and join Cantor & Co. as they work to craft and enact a broader strategy to improve America’s fiscal health.

So, obviously, this thing is dividing Conservatives.

Another interesting tidbit of information, according to “The Hill”, Rep. Dennis Kucinich (D-Ohio). says: “I will tell you right now I don’t know if they have votes,” “If the votes were there, this would be on the floor. The votes aren’t there.” An interesting development indeed.

Obviously, there’s a ton of opinions and angles on this story. Most of which can be found at Memeorandum.

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A very interesting video on our Nation’s banking system

This video, made by the Ludwig Von Mises Institute, makes the case of why the United States of America should go to a 100% gold standard.

I highly recommend that everyone watch this video.

Also, I recommend everyone go to my bookstore and check out the section on the gold standard.

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